Trade Execution Model of IFC Markets


BEST
EXECUTION

Best trade execution refers to the duty of any broker executing orders on behalf of customers to ensure the best execution possible for their customers' orders. And we at IFC Markets take that duty very seriously, providing all the BEST in:

  • Order execution – Instant execution
  • Pricing – Tightest fixed spreads
  • Size – Trading with any volume size

1. The hybrid scheme of clients’ orders execution

The quotations offered by the company to its clients via trading terminals are formed automatically from the best quotations of our liquidity providers. Those best quotes are inside our tight fixed spread. The clients send their orders by these quotations.

IFC Markets performs the trade execution process on a hybrid basis depending on the clients' orders volumes.

a) Small-volume order execution (up to $1 million)

The orders are executed instantly at the quote of the company’s trading terminal, then are summed into the bigger ones and only after that are hedged through the liquidity provider. Clients do not suffer from delays and we carry the risk of requoting by the liquidity provider connected to the possible delay while summing the clients’ orders. Moreover, the majority of the small orders from clients has opposite direction and is cleared to balance. Only a small part of such orders is consolidated into a large order and goes to hedging, which substantially increases the reliability of our scheme.

  • Clients
  • Quotations

    Aggregation of quotes

    Quotations

    Order

    Summation of volumes

    Order
    (Hedge)

  • Liquidity providers

b) Medium-volume order execution (from $1 - $10 million)

The order is executed instantly at the quote of the company’s trading terminal and is automatically hedged immediately by our liquidity provider. That is the STP (straight through processing) model of trade execution.

There is no delay. We carry the risk of a possible change in the quotations of the liquidity provider.

  • Clients
  • Quotations

    Aggregation of quotes

    Quotations

    Order

    Order
    (Hedge)

  • Liquidity providers

c) High-volume order execution (exceeding $10 million)

The order proceeds to the company’s server and right away to the liquidity provider who verifies the possibility of executing the deal (if the price yet remains unchanged) and the deal is performed. The information on the performed deal is directed to the client’s terminal. That is the DMA (direct market access) model of trade execution.

In this scheme the delay and requoting from the liquidity providers are possible.

  • Clients
  • Quotations

    Aggregation of quotes

    Quotations

    Order

  • Liquidity providers

Our order execution process is convenient for the clients and secure for the company at the same time.

2. Fixed spread

The company offers fixed spreads for the majority of financial instruments' groups.

The fixed spread protects against the continual volatility; in fact, it is a bonus for the client as the company carries the volatility risks. The company allows the clients to trade exactly with fixed spreads instead of sending an order to the market. For small and medium volumes we perform the trade execution first and then automatically transfer the deals onto the market to the liquidity providers (this scheme operates in accordance with our regulation and license).

While scalping on such quotations the client can calculate trading tactics precisely.

3. Deviation and Requoting

There is almost no requoting (offer to a client a new changed quotation) for orders of small and medium volumes as there is no need to wait for the response from the liquidity provider; such orders are executed by our company immediately. Requoting is possible only in case of important news or weak Internet connection as the price changes considerably while the order is going from the client’s terminal to the company’s server.

The client may set the price deviation in advance while setting the order on the company’s terminals. If the quotation has already changed remaining within the set deviation, the order is executed at a new quotation without requoting.

For large volumes (exceeding $10 million) requoting is subject to news or to the period of low liquidity from the liquidity provider, where the order is sent directly for execution.

4. Execution of Market, Stop and Limit orders, News trading

Market orders of medium volume are executed immediately at the price the client sees on his trading terminal. For the execution of large orders, exceeding $10 million, they are sent directly to the liquidity provider.

The limit orders are executed at the client’s set price or at the better price (in case of a gap in favor of the client).

Stop orders are executed at the client’s set price and in case of a gap the order is executed at the first price (tick) after the gap.

Clients have right to use any trading strategy including scalping and news trading. Significant volatility and gaps are possible in case of news and unexpected events. In such case the orders are executed at the first price after the gap. The first tick on the news release has to be confirmed by the second tick. The delays are possible in such cases, as the markets need to calm down and supply the first quotes after the gap.

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